Karachi June 9 2023: Pakistan is likely to increase tax from 1% to 5% of the gross amount remitted abroad through credit, debit or prepaid cards, according to proposed finance bill 2023-24.
While the tax rate will be increased to 10% from 2% for those whose are not active tax payers.
In November last year, State Bank of Pakistan bars limit of USD 30,000 per annum on usage of debit and credit cards for international payments in order to avoid its commercial usage, according to the new notification issued here on Tuesday.
The State Bank of Pakistan (SBP) has observed that debit/credit cards are being used for transactions, which are not aligned with the profile of the individual or are intended for commercial purpose. Therefore, SBP has advised banks to ensure that the use of debit/ credit cards for international transactions is aligned with the profile of card holders and for their personal needs only.
Besides, an annual limit of USD30,000 has been prescribed for individuals for international transactions. For the purpose of this notification the year will start from November 1, however, limit for the current year will be calculated from the date of issuance of this circular. This limit would be applicable for an individual across the banking industry.
